Sports entertainment giant AEG up for sale

In a deal that could complicate plans for a downtown NFL stadium, Anschutz Company announced Tuesday it may sell the sports division poised to build the project.

Denver, Colo.-based Anschutz Company is seeking a buyer for Anschutz Entertainment Group, the L.A.-based sports and entertainment division unit that owns the Los Angeles Kings, Staples Center, L.A. Live, the L.A. Galaxy and other sports teams and stadiums around the globe. AEG also operates the Citizens Business Bank Arena in Ontario.

It is unclear if there is already a buyer, or how long Anschutz Company has been considering the sale, but in a statement, Cannon Y. Harvey, president of the Anschutz Company, called it an "appropriate time to transition AEG to a new qualified owner."

The company hired Blackstone Advisory Partners to help with the sale - the same firm that managed the sale of the Los Angeles Dodgers for $2.15 billion earlier this year, which broke the record for sale of a sports franchise.

On a global level, the sale of AEG would dramatically shake up the sports and entertainment world.

While AEG is based in Los Angeles, where some of its most high-profile projects and ownership stakes are located, including Staples Center, L.A. Live, and the Home Depot Center in Carson, the company has theaters and arenas in New York City, London, Berlin, Shanghai and Sydney.

The National Football League has yet to agree to come to L.A., but city planning staff, financial advisors and transportation officials have worked for months with AEG representatives on a proposal to build a downtown stadium.

Mayor Antonio Villaraigosa was aware "for some time" that AEG was going up for sale. In a statement released by Villaraigosa's office, the mayor stated that he speaks regularly to Anschutz Company head Phil Anschutz and AEG President and Chief Executive Officer Tim Leiweke.

"I have the commitment from both of them that this won't affect plans for an NFL team to return to Los Angeles in the near future," Villaraigosa said, "And so will not affect my support for moving ahead with Farmers Field and the Convention Center site."

Asked if the mayor should have told the public about the potential for a sale, the mayor's spokesman, Peter Sanders, said that Villaraigosa stood by his statement.

Despite the assurances from AEG, a sale could complicate plans to build a 72,000-seat stadium in downtown, since the buyer would have to agree to the city's terms over the project.

Notably, the financial deal between AEG and the city is considered unique given that no public financing is going toward the stadium.

Most cities rely on taxpayer dollars to pay for stadiums, and the new buyer would have to agree to build a new convention center hall for the city.

City Councilwoman Jan Perry, who represents downtown, and has helped champion the stadium, said she was informed by Leiweke on Tuesday that AEG was for sale.

"He said, `They're selling the company,"' Perry said, adding that she believes that approvals of the stadium can be transferred to the new owner, if one is found.

Last week, the Planning Commission approved the environmental impact report for the stadium - a crucial hurdle for the project's approval - and the City Council is expected to vote on the report next week.

Asked if she was surprised by the news of a possible AEG sale, Perry responded: "Nothing surprises me anymore."